Within the cryptocurrency world, there has been a lot of discussion over the recent Solana network outage.
Renowned cryptocurrency analyst Ari Paul has commented on the episode, suggesting that investors’ complex perception of risk rather than a simple indication of market maturity may be the cause of the unfavourable market response to Solana’s technical problems.
As a possible competitor to Ethereum, Solana is hailed for its speed and efficiency, but a major setback occurred when its mainnet went down. This prompted concerns over blockchain networks’ security and stability.
Market reaction and expectations
In the past, the cryptocurrency market has responded to network flaws in a variety of ways, and events like as the 51% assaults on Bitcoin Gold, Bitcoin SV, and Ethereum Classic between 2018 and 2020 did not substantially erode investor trust.
But the response to the most recent outage in Solana suggests a shift. Paul says this is more a development of what investors have learned to expect and factor into their investments than it is a sign of the market’s maturity.
Network security and uptime are important to Bitcoin investors, but Solana’s investors may have already factored in these risks because they are aware of the company’s past problems.
As a result, SOL’s price dropped little while Bitcoin’s price probably crashed quite badly. As a result of investors having probably priced them in, cryptocurrencies like ETH were unaffected by 51% during this time.
Another Solana outage
Solana’s technical problems on February 6 were characterised as a “major outage,” causing performance deterioration on the mainnet that stopped block progression.
This incident caused Solana’s validators and engineers to act quickly.
In spite of countermeasures, the value of the SOL token fell by almost 3%.
Now, the Solana mainnet has been down for hours.
